Perth County approves asset management plan, identifies $2.8-million annual infrastructure funding gap

By Galen Simmons

After making two minor corrections during discussion, Perth County council unanimously approved the county's 2025 asset management plan Aug. 6, adopting a long-term strategy that identifies a $2.8-million annual infrastructure funding gap and recommends an average annual tax increase of 1.3 per cent over the next decade to eliminate it.

Prepared by public works director Bill Wilson with assistance from Public Sector Digest Citywide, the plan brings Perth County into full compliance with the province's final phase of municipal asset-management reporting requirements. It covers the county's roads, bridges and culverts, as well as non-core assets including facilities, fleet vehicles, machinery and computer systems.

Wilson told council the updated plan incorporates the county's latest bridge inspection data and recent changes to municipal drain funding, providing the most accurate picture yet of the county's long-term infrastructure needs.

The plan values the county's infrastructure portfolio at $328.4 million. Staff have assessed the condition of 91 per cent of those assets, with 76 per cent rated in fair or better condition. To maintain current service levels and prevent infrastructure backlogs, the county estimates it will need to invest an average of $9.8 million annually in capital infrastructure. With current annual capital funding sitting at roughly $7 million, leaving an annual funding shortfall of $2.8 million.

Wilson stressed council's approval of the document does not automatically mean future tax increases.

"Approving this plan does not commit council to any immediate tax change," Wilson said. "This is a high-level, long-range planning tool meant to guide future budgets and financial forecasting."

The plan recommends closing the funding gap through an average annual tax increase of 1.3 per cent over the next 10 years. Wilson noted the county's proposed 2.6 per-cent infrastructure levy in the draft 2027 budget is intentionally higher because it addresses recent financial pressures.

"The 2027 draft rate is a temporary front-loaded correction required to address recent operational deficits, specifically our winter maintenance and municipal drain deficits from 2024 to 2025," Wilson said, adding the county's goal is to "return to the plan's long-term 1.3 per-cent path in subsequent years."

Chris Vanderheyden, director of asset management with Public Sector Digest Citywide, told council the document should be viewed as an evolving roadmap rather than a one-time exercise.

"This is not a once-and-done report," Vanderheyden said. "It's very dynamic. Data is going to change, costs are going to change, conditions are going to change, and this is a dynamic document that must be married to your data going forward."

He added municipalities are increasingly finding provincial and federal grant applications tied to comprehensive asset-management planning.

"We do know by experience from other clients that grant-funding applications are now being tied to the completion of these asset management plans," Vanderheyden said.

During discussion, Coun. Bob Wilhelm pointed out two issues in the draft plan, noting the replacement value for a grader appeared too low and that references to schools and recreation centres should identify them as lower-tier municipal responsibilities.

"I think a new grader costs around $800,000," Wilhelm said. "It should indicate that the lower tiers look after schools, rec centres, etc., not county."

Wilson agreed both items should be corrected before the final plan is published, and council approved the document with those amendments.